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Natural Resource Partners (NRP)
NYSE:NRP
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Natural Resource PRN
(NYSE:NRP)
Rating:70Neutral
Price Target:
$105.00
â–²(10.63%Upside)
Natural Resource PRN (NRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.27B
Dividend Yield3.1%
Average Volume (3M)20.65K
Price to Earnings (P/E)9.1
Beta (1Y)0.56
Revenue Growth-19.21%
EPS Growth-30.92%
CountryUS
Employees56
SectorEnergy
Sector Strength67
IndustryCoal
Share Statistics
EPS (TTM)2.96
Shares Outstanding13,138,097
10 Day Avg. Volume23,385
30 Day Avg. Volume20,651
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.68
Price to Sales (P/S)0.00
P/FCF Ratio2.54
Enterprise Value/Market Cap0.64
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit3.89
Enterprise Value/Ebitda0.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Natural Resource PRN Business Overview & Revenue Model
Company DescriptionNatural Resource PRN (NRP) is a company operating in the natural resources sector, focusing on the management and development of natural resource assets including minerals, energy resources, and environmental sustainability solutions. The company provides a range of services such as resource extraction, processing, and consultation on sustainable resource management practices.
How the Company Makes MoneyNRP generates revenue through the extraction and sale of natural resources like minerals and energy products. The company earns income from the processing and refining of these resources, which are then sold to various industries, including manufacturing and energy production. Additionally, NRP provides consultation services on sustainable resource management, charging fees for expertise and strategic planning. Partnerships with industrial clients and governmental bodies also contribute to revenue by providing long-term contracts and project-based income.
Natural Resource PRN Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -6.20%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook. While the company demonstrates strong financial management and strategic debt reduction, it faces significant challenges from declining commodity prices and market slowdowns, particularly in soda ash and carbon-neutral initiatives.Q1-2025 Updates
Positive Updates
Strong Free Cash Flow Generation
NRP generated $35 million of free cash flow in Q1 2025 and $214 million over the last 12 months, demonstrating strong financial management despite challenging market conditions.
Robust Capital Structure
NRP has a solid capital structure and expects to use robust free cash flow to pay off remaining debt of $118 million, potentially leading to significant increases in unit holder distributions as debt is paid off.
Strategic Debt Reduction
NRP continues to prioritize debt reduction and has made progress with lower interest payments due to less debt outstanding.
Positive Long-Term View on Soda Ash Investment
Despite current market challenges, NRP maintains a positive long-term view on its soda ash investment, noting that Sisecam Wyoming is one of the world's lowest-cost producers.
Negative Updates
Commodity Price Declines
Metallurgical coal, thermal coal, and soda ash prices have declined precipitously over the last year, negatively impacting NRP's results.
Decreased Cash Flow in Mineral Rights Segment
In Q1 2025, the mineral rights segment saw net income decrease by $15 million, and operating and free cash flow decreased by $27 million and $26 million respectively, compared to the prior year's first quarter.
Soda Ash Market Challenges
Soda ash prices remain at the lowest levels in decades, with cash distributions from Sisecam Wyoming dropping 80% from the previous year quarter due to a supply-demand imbalance and weak demand.
Carbon-Neutral Initiatives Slowdown
The general market slowdown for most carbon-neutral initiatives has materialized, with lackluster leasing interest for underground carbon sequestration due to political, regulatory, and market uncertainties.
Company Guidance
During the Natural Resource Partners L.P. first quarter 2025 earnings call, the company reported generating $35 million of free cash flow in Q1 2025 and $214 million over the past 12 months. Despite declines in metallurgical coal, thermal coal, and soda ash prices, NRP anticipates continued robust free cash flow to pay down its remaining $118 million debt. The mineral rights segment generated $44 million of free cash flow in Q1 2025, though net income and cash flow decreased compared to the prior year, primarily due to weaker steel demand affecting metallurgical coal prices. The soda ash business saw an 80% drop in cash distributions to $3 million from the previous year, attributed to a global supply-demand imbalance and reduced demand for flat glass. NRP paid a $0.75 per common unit distribution for Q1 2025 and a special $1.21 distribution in March 2025. The company prioritizes liquidity and balance sheet strength, with future cash flows potentially directed towards distributions and unit repurchases, while remaining cautious about acquisitions.Natural Resource PRN Financial Statement Overview
Summary
NRP shows strong cash flow generation and operational efficiency, but faces challenges in revenue growth and high leverage. While cash flow strength offers a buffer, declining revenue and net income present financial risks.Income Statement
The income statement shows a declining trend in revenue, with a significant drop from $328 million in 2022 to $229 million in the TTM period. Gross profit margins remained high, indicating efficient cost management, but net income decreased sharply in the TTM period, affecting profitability. Historical profitability was stronger, with high EBIT and net margins in 2022.70
Positive
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio peaking in previous years and stockholders' equity nearly depleted in the TTM period. The equity ratio has decreased significantly, indicating increased risk. Total assets remained relatively stable, but liabilities' management needs attention to improve stability.65
Positive
Cash Flow
The cash flow statement is strong, with consistent operating cash flow and free cash flow. The operating cash flow to net income ratio is high, indicating efficient cash generation relative to net income. Cash flow stability is a notable strength despite the overall profitability decline.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 229.91M | 245.03M | 293.66M | 328.08M | 194.25M | 129.01M | Gross Profit |
| 207.45M | 205.64M | 261.34M | 305.57M | 175.17M | 119.81M | EBIT |
| 174.13M | 199.20M | 292.54M | 305.23M | 147.78M | 91.45M | EBITDA |
| 197.29M | 214.73M | 311.03M | 317.29M | 166.85M | -34.65M | Net Income Common Stockholders |
| 29.05M | 183.64M | 274.42M | 268.49M | 48.16M | -136.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 30.88M | 30.44M | 11.99M | 39.09M | 135.52M | 99.79M | Total Assets |
| 772.47M | 772.91M | 797.88M | 235.09M | 953.82M | 921.88M | Total Debt |
| 138.80M | 142.07M | 155.06M | 168.28M | 433.55M | 471.50M | Net Debt |
| 107.93M | 111.62M | 143.07M | 129.19M | 298.02M | 371.71M | Total Liabilities |
| 208.12M | 221.80M | 219.64M | 235.09M | 513.89M | 549.02M | Stockholders Equity |
| 590.00K | 541.56M | 570.23M | 404.80M | 3.21M | 322.00K |
| Cash Flow | Free Cash Flow | ||||
| 211.42M | 248.49M | 310.97M | 266.72M | 121.80M | 89.27M | Operating Cash Flow |
| 211.42M | 248.49M | 310.98M | 266.84M | 121.80M | 89.27M | Investing Cash Flow |
| 7.65M | 7.51M | 5.42M | 2.69M | 2.41M | 1.68M | Financing Cash Flow |
| -199.18M | -237.55M | -343.50M | -365.95M | -88.49M | -89.43M |
Natural Resource PRN Technical Analysis
Negative
94.91
Price Trends
96.99
Negative
99.52
Negative
98.52
Negative
Market Momentum
-0.41
Negative
44.13
Neutral
33.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRP, the sentiment is Negative. The current price of 94.91 is below the 20-day moving average (MA) of 95.81, below the 50-day MA of 96.99, and below the 200-day MA of 98.52, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 33.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRP.
Natural Resource PRN Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.31B | 12.20 | 14.71% | 10.87% | -8.53% | -53.44% | |
76 Outperform | $1.61B | 5.11 | 10.33% | 2.26% | -7.42% | -26.06% | |
70 Neutral | $1.27B | 9.12 | 31.98% | 3.10% | -19.21% | -30.92% | |
70 Neutral | $697.52M | 7.48 | 14.26% | 5.83% | -8.76% | 51.59% | |
62 Neutral | $2.47B | 23.24 | 5.20% | 0.68% | -21.04% | -75.78% | |
58 Neutral | $7.57B | 3.50 | -4.45% | 10.15% | 0.79% | -49.51% | |
53 Neutral | $1.44B | 55.80 | 1.66% | 0.36% | -23.34% | -95.18% |
* Energy Sector Average
Performance Comparison
NRP
Natural Resource PRN
94.91
8.03
9.24%
ARLP
Alliance Resource
25.99
4.90
23.23%
SXC
Suncoke Energy
8.16
-0.86
-9.53%
AMR
Alpha Metallurgical Resources
112.62
-181.31
-61.68%
HCC
Warrior Met Coal
46.79
-18.08
-27.87%
BTU
Peabody Energy Comm
13.64
-8.57
-38.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.